Gunvor turnover rises in 2010, sees better 2011

LONDON, Feb 23 (Reuters) - Oil trader Gunvor reported a rise in 2010 trading volumes and revenues on Wednesday and said it expected higher price volatility in 2011, which could boost performance.

The Geneva-based firm, which grew on Russian oil and products exports, said trading volumes rose 11 percent to 104 million tonnes in 2010 while turnover increased to $65 billion from $53 billion.

“Trading conditions were less favourable than in the previous year with narrower margins resulting from increased competition and less price volatility,” the firm said in a statement.

“Despite the narrower margins, 2010 was still a good year for Gunvor and we have seen a stronger start to 2011... I expect to see a higher level of volatility in 2011,” said Gunvor Chairman Torbjörn Tornqvist.

“There are still capacity slacks along the entire oil chain and a crude oil price of over $100 per barrel would not appear to be warranted given current fundamentals.

“However, political risk and uncertainty, particularly in the Middle East, and financial and other macro-economic aspects may very well drive prices higher,” he said.